Lakeside Steel supports growth of Alabama facility with credit facility expansion

Thursday, 24 February 2011

Welland, Ontario-based pipe and tubing manufacturer Lakeside Steel Inc. announced Wednesday an expansion of its credit facility. The improved credit facility represents an increase of $27,500,000 from its original amount to total $67,500,000-$7,500,000 of which is a term loan-with its lender CIBC Asset-Based Lending Inc.

The expanded credit facility will be used to support the growth of Lakeside Steel in Alabama, and gives Lakeside Steel, Inc. added flexibility to pursue other business opportunities that may develop in the future.

Tags: pipe , longs , tubular , USA , Canada , North America , investments , steelmaking
(sourced:steelorbis)

Nucor raises steel prices as demand gains and raw materials climb

Sunday, 13 Feb 2011

It is reported that Nucor Corporation has raised prices for some of its products amid demand gains and increasing raw material costs.

Charlotte North Carolina based Nucor boosted prices for plate steel for March delivery by a minimum of USD 80 a tonne.

Nucor said that plate steel sold by contract was increased by USD 65 a tonne. AK Steel Holding Corporation, the fourth biggest US based steelmaker by 2010 sales, said it is raising prices for new orders of flat rolled carbon steel products by USD 50 a tonne.

Mr Patrick McFadden a Nucor spokesman said that Nucor sees rising raw materials and incremental demand. He added that "Some level of demand occurred to allow for the increases to be implemented."

US steelmakers have raised prices and brought more production back on line as they recovered from the plunge in demand following the 2008-09 recession.

(sourced:bloomberg)

US steelmaker shares down on dollar, profit-taking

Friday, Feb 4, 2011 9:47pm GMT
* U.S. steelmakers' shares fall
* Profit-taking, stronger dollar cited
* Little impact seen from proposed Nippon-Sumitomo merger
(Updates with more analyst comments, closing stocks)

NEW YORK, Feb 4 (Reuters) - The shares of U.S. steelmakers fell on Friday and analysts attributed the drop to profit-taking after a recent run-up and a stronger dollar, rather than to news of a major steel merger in Japan.
"When the dollar is up, it usually hurts commodities," said Charles Bradford of Bradford Research. "U.S. steelmakers want to export and it's better if the dollar is weak."
The dollar extended gains against the Japanese yen on Friday, boosted by optimism about the U.S. economic outlook.

Bradford also noted steel stocks had risen recently -- U.S. Steel Corp (X.N: Quote) had risen 6 percent in the week since posting a bigger-than-expected fourth-quarter loss and giving only a modest forecast for improvement in the first quarter.
But he did not think the stock drop was related to plans by Japan's Nippon Steel Corp (5401.T: Quote) and Sumitomo Metal Industries Ltd (5405.T: Quote) to create the world's No. 2 steelmaker.
"I see this as more about Japan being wary of China and other Asian competition. It's not a concern for the U.S.," he said.

Michael Locker, of steel industry consultancy Locker Associates, noted the proposed merger creates a 48-million-ton per-year producer.
"That's a big move, but I don't see a deep ... impact for U.S. steelmakers," he said.
"It will make for tougher competition on world markets, but I don't think it will squeeze U.S. steelmakers though. Japan is more focused on China."
On the New York Stock Exchange, U.S. Steel shares dropped 4 percent to close at $58.17, AK Steel Holding Corp (AKS.N: Quote) dropped 3.0 percent to $15.84 and Nucor Corp (NUE.N: Quote) ended the day 24 cents lower at $47.97. (Reporting by Steve James;editing by Gerald E. McCormick & Andre Grenon, sourced:reuters)